Metro Inc. announced that an ongoing strike at its distribution centre in Laval, Quebec, will significantly reduce its third-quarter earnings. The labour dispute, now in its third week, has disrupted supply chains for the grocery chain's Quebec stores.
Strike details and impact
Approximately 400 workers at the Laval facility walked off the job on June 9 after contract negotiations broke down. The striking employees, represented by the United Food and Commercial Workers Union, are demanding higher wages and improved working conditions. Metro has stated that the strike has led to reduced inventory levels and increased costs due to the use of temporary workers and alternative distribution methods.
In a press release, Metro said the financial impact is expected to be "material" for the quarter ending July 4, 2026. The company did not provide specific dollar figures but noted that sales in Quebec have been affected. "We are working diligently to resolve the dispute and minimize disruption to our customers," said a Metro spokesperson.
Broader context
The strike comes amid a wave of labour actions in Quebec's grocery sector, with workers at other chains also seeking better contracts. Metro operates over 600 supermarkets in Quebec and Ontario under the Metro, Super C, and Food Basics banners. The company reported annual revenue of $18.5 billion in fiscal 2025.
Analysts have warned that prolonged strikes could erode customer loyalty and benefit competitors like Loblaw and Sobeys. "If the strike continues for another month, we could see a permanent shift in market share," said retail analyst Lisa Thompson of Toronto-based Market Insights.
Company response
Metro has implemented contingency plans, including rerouting shipments from other warehouses and hiring temporary staff. The company also noted that it has filed for government mediation. "We remain committed to reaching a fair agreement for all parties," the spokesperson added.
Shares of Metro Inc. fell 2.3% on the Toronto Stock Exchange following the announcement, closing at $78.45. The company is scheduled to report its full third-quarter results in August.
